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Reports Malaysia

Malaysia stock market and companies daily report (May 19, 2014)

May 19, 2014, Monday, 05:43 GMT | 01:43 EST | 10:13 IST | 12:43 SGT
Contributed by Shares Investment

Petronas’ Unit Awards Contract To Siemens-MMC Consortium

- Petronas’ subsidiary, Pengerang Power has awarded the engineering, procurement, construction and commissioning (EPCC) contract for its Pengerang Co-generation Plant (PCP) project to a consortium of Siemens AG, Siemens Malaysia and MMC Engineering Services.

- The PCP is one of the six associated facilities to be developed within Petronas’ Pengerang Integrated Complex (PIC).

- PIC will house the Refinery and Petrochemicals Integrated Development project and other ancillary facilities which will also include the Pengerang LNG Re-gasification Terminal, Air Separation Unit, Crude and Product Tanks and so on.

Significance: The PIC project is part of the larger Johor State’s Pengerang Integrated Petroleum Complex to establish new engines of growth for Malaysia while meeting the country’s future energy requirements as well as to position Petronas as a key player in the Asian chemicals market.

ECS ICT To Be Top 3 Phone Distributor

- ECS ICT aims to be a top three distributor of smartphones in Malaysia by this year and double sales from its mobility division.

- The company’s sale from smartphones and tablets accounted for 10 percent of its group sales last year, and is targeting to double this or more in FY14.

- Based on its total sales of RM1.3 billion last year, achieving the company’s goal could mean upward sales of RM260 billion from its mobility arm in FY14.

Significance: On Device Research noted that smartphones made up only 35 percent of total mobile phone penetration in Malaysia, with the balance 65 percent contributed by basic feature phones, presenting huge opportunities for the smartphone market.

FGVH To Acquire London-Listed Palm Company?

- Felda Global Ventures Holdings (FGVH) is said to have set sights on taking over a major stake in London Stock Exchange-listed New Britain Palm Oil (NBPO), which has a market capitalisation of about £615.2 million (RM3.3 billion).

- NBPO has 77,000 hectares of oil palm plantations in Papua New Guinea (PNG) and the Soloman Islands, 12 palm oil mills and one refinery each in PNG and Liverpool. It is also the largest domestic sugar and beef producer in PNG.

- Notably, another Malaysian plantation group, Kulim (M) had previously attempted to raise its existing stake in NBPO but failed due to the growing sentiment on “resource nationalism” in PNG.

Significance: It is unsure if FGVH would face the same resistance. However, FGVH’s scheme model, as one of the most successful land development schemes in the world, has been admired by many developing and emerging nations because it helps to alleviate poverty in the rural economy, and this could be a major selling point for FGVH to NBPO.